Question

Diego wants to buy a dirt bike. He borrows a $7,999 simple interest loan from the bank

for 36 months at an interest rate of 9.7%.How much simple interest will he pay

Answer 1

$ 2,327.709

Step-by-step explanation:

Only the principal amount is considered when calculating simple interest. In simple interest, the principal amount remains constant. The formula for simple interest is as I = p x i x t

where I = interest

P = principal amount ...

i= interest rate

t= time

For Diego, p= $7,999, i= 9.7% , t 36 months or 3 years

Diego will pay

I= 7999 x( 9.7/100) x 3

I= 7999 x 0.097 x 3

Diego will pay $ 2,327.709